US appeals court blocks new airline rules for more ‘junk fees’ transparency

Three judges at the 5th US Circuit Court of Appeals in the United States (US) have temporarily blocked attempts by the Department of Transportation (DOT) to inject more transparency into the flight booking process. 

In April 2024, the DOT announced new rules requiring more cost transparency when passengers are purchasing tickets to protect customers from “hidden junk fees”.  

According to Bloomberg, the appeals court granted airlines their legal request to stop the introduction of the new rules pending a review of the regulation. 

In a court filing on July 29, 2024, the judges said that the new rules “likely exceeds DOT’s authority and will irreparably harm airlines.” 

The court also said it had received “ample evidence” from airlines regarding the “irreparable harm” they will face.  

US airlines, including Delta Air Lines, American Airlines, United Airlines, JetBlue Airways, Hawaiian Airlines and Alaska Airlines, launched legal action against the US government in April 2024, arguing that a new rule would confuse potential customers with too many details while buying tickets online.   

Headed by Airlines for America, the group of carriers asked a federal appeals court on May 10, 2024, to overturn the rule. 

On April 24, 2024, the DOT announced that it would require airlines to tell consumers upfront what fees they charge for checked bags, a carry-on bag, for changing a reservation, or cancelling a reservation 

“Nothing in the court’s decision prevents airlines from voluntarily complying with this common sense rule that simply requires them to keep their customers fully informed when buying a plane ticket,” DOT said in a statement to Bloomberg following the judges’ decision yesterday. 

US airlines sue Biden administration over new rules on ‘junk fees’ transparency

AirlinesbyIan Molyneaux2024-05-14

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